Bitcoin Drops As U.S. Regulators Reject Winklevoss ETF Plan

Bitcoin


By Todd White

Bitcoin fell for a third day, slipping below $8,000, after the U.S. Securities and Exchange Commission rejected a request to list an exchange-traded fund run by Tyler and Cameron Winklevoss.

The decline halted Bitcoin’s July rally, which had seen the cryptocurrency gain more than 30 percent after its plunge earlier this year. The U.S. turned down the Winklevoss application saying the Cboe Global Markets Inc. platform that would have listed the Bitcoin ETF failed to show that the underlying market was “resistant to manipulation.” The drop also coincided with a signal of lost momentum that some traders consider to be bearish, the first such indication since the token’s historic surge in December.

“This ‘overbought’ condition becomes a bearish signal when a new high in price does not coincide with a new high in the RSI,” for Bitcoin, said Craig Erlam, senior market analyst at online trading firm Oanda Corp. in London.

Bitcoin fell 2.1 percent to $7,965 Friday, and the momentum indicator known as the relative-strength index fell back into the normal range, according to Bitstamp prices compiled by Bloomberg. Bitcoin is down about 43 percent this year, hitting a low on June 29.


This story was provided by Bloomberg News.